Dealers Finally Realize Cars Are Too Expensive

The Wall Street Journal recently ran an interesting article about how dealerships in the United States are realizing cars may be a little too expensive. I know, shocking revelation. Considering J.D. Power says the average price for a new vehicle is currently at about $32,000 that’s a little rich for plenty of people.

Sure, some critics point out a Nissan Versa Note or Chevy Spark are relatively cheap. That’s true, but some families don’t fit in those. Not only that, but they’re far more expensive than cars from 20 years ago, meanwhile plenty of studies show that the average US worker hasn’t seen much in the way of an income increase.

You know all those onboard technologies on cars that half the time don’t work right, if you’re lucky? You can blame those in part for the price inflation. Automakers use stuff like that to justify pumping up MSRPs. Another factor pointed out in the report is everyone’s desire to drive an SUV or truck, which cost more.

The report quotes the chairman of the National Automobile Dealers Association as saying that the continued increase in vehicle prices will kill sales. You don’t say?